Posted at 13 June 2022 / Categories Market Roundups
Market Roundup
•UK Construction Apr Output (MoM) -0.4% ,-0.5% forecast,1.7%previous
•UK Monthly GDP 3M/3M Change 0.2%,0.4% forecast, 0.8% previous
•UK GDP (MoM) -0.3%, 0.1% forecast, -0.1% previous
•UK GDP (YoY) 3.4%,3.9% forecast, 6.4% previous
•UK GDP (QoQ) 0.2%,0.4% forecast, 0.8% previous
•UK Apr GDP Industrial Production (MoM) -0.6%,0.2% forecast,-0.2% previous
•UK Apr Trade Balance-20.89B, -22.50B forecast,-23.90B previous
•UK Apr Manufacturing Production (MoM) -1.0%,0.2% forecast,-0.2% previous
•UK NIESR Monthly GDP Tracker -0.1%,0.3% previous
•French 6-Month BTF Auction 0.531%, -0.295% previous
•French 3-Month BTF Auction-0.457%, -0.555% previous
•French 12-Month BTF Auction -0.178% ,0.239% previous
Looking Ahead Economic Data(GMT)
•14:00 UK NIESR GDP Estimate 0.3% previous
•15:30 US 3-Month Bill Auction 1.230% previous
•15:30 US 6-Month Bill Auction 1.710% previous
Looking Ahead - Events, Other Releases (GMT)
•18:00 US FOMC Member Brainard Speaks
Fxbeat
EUR/USD: The euro declined on Monday as dollar resumed its march as red-hot U.S. inflation fuelled worries about even more aggressive policy tightening in a big week for central banks. The inflation reading unnerved investors , as markets ratcheted up expectations on where U.S. interest rates would peak next year to around 4% from around 3% less than two weeks ago. Expectations of even more aggressive rate hikes from global central banks prompted investors to ramp up their bullish bets on dollar. This is a big week for central banks with the Fed, the Bank of England and Swiss National Bank holding policy meetings. Immediate resistance can be seen at 1.0518(Daily high),an upside break can trigger rise towards 1.0565(38.2%fib).On the downside, immediate support is seen at 1.0508(23.6%fib), a break below could take the pair towards 1.0408(Lower BB).
GBP/USD: Sterling against dollar on Monday after data showed Britain's economy unexpectedly shrank in April and from tensions with the European Union over post-Brexit trade with Northern Ireland. Gross domestic product contracted by 0.3% after falling by 0.1% in March, the first back-to-back declines since March and April 2020, at the start of the coronavirus pandemic. British economic growth is already expected to be among the weakest for rich countries in 2023, and there is uncertainty over how fast the Bank of England can raise interest rates to tame inflation without further hurting the economy. The pound fell as much as 0.8% to $1.2213, its lowest level since May 13. Immediate resistance can be seen at 1.2333(38.2%fib),an upside break can trigger rise towards 1.2462 (9DMA).On the downside, immediate support is seen at 1.2170 (Daily low), a break below could take the pair towards 1.2084 (23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Monday ahead of a policy-focused week in which the U.S. Federal Reserve and the Bank of England (BoE) are expected to raise interest rates to tame inflation. The focus will be on central banks' efforts, with the Fed and the BoE expected to raise rates. While there is a chance the Swiss National Bank will also hike, little change is expected from the Bank of Japan. At 13:23 GMT, the dollar was 0.50 percent highrt versus the Swiss franc at 0.9388 .Immediate resistance can be seen at 0.9942 (23.6%fib), an upside break can trigger rise towards 1.0000(Psychological level).On the downside, immediate support is seen at 0.9871 (Daily low), a break below could take the pair towards 0.9827(38.2%fib).
USD/JPY: The dollar declined against dollar on Monday as yen strengthened on speculation Japanese authorities could intervene to support the currency. The Bank of Japan (BoJ) has so far resisted pressure to tighten policy, weakening the country's currency. The policy divergence has sent the yen down more than 15% against the dollar since early March.Japan's top government spokesperson said on Monday Tokyo stood ready to "respond appropriately" if needed. The yen fell as much as 0.6% on the day to 135.22 yen per dollar, its lowest since 1998. It was last trading at 134.00 yen per dollar. Strong resistance can be seen at 134.98 (23.6%fib), an upside break can trigger rise towards 135.31(Higher BB).On the downside, immediate support is seen at 133.12 (38.2%fib), a break below could take the pair towards 132.01(50%fib).
Equities Recap
European stocks fell sharply on Monday to extend losses from the previous session as hotter-than-expected U.S. inflation data along with news of a "ferocious" COVID-19 outbreak in Beijing's most populous district of Chaoyang sapped investors' appetite for riskier assets.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading down at 1.22 percent, Germany's Dax was down by 2.33 percent, France’s CAC finished was down by 2.39 percent.
Commodities Recap
Gold fell 1% on Monday after the dollar strengthened and Treasury yields rose as data showing surging inflation in the U.S. fuelled bets for steeper rate hikes from the Federal Reserve.
Spot gold fell 0.9% to $1,853.99 per ounce by 1212 GMT, retreating from a more than one-month high of $1,877.05 touched earlier.U.S. gold futures shed 1% to $1,856.80.
Oil dropped almost $2 a barrel on Monday as a flare-up in COVID-19 cases in Beijing dented hopes of a Chinese demand rebound, while worries about more interest rate hikes to control rampant inflation added further pressure.
Brent crude was down $1.54, or 1.3%, to $120.47 at 1213 GMT, while U.S. West Texas Intermediate crude fell $1.82, or 1.5%, to $118.85.